The Week In SPAC News - Sunday, May 30

The transaction is expected to deliver approximately $330 million of gross proceeds. Lead strategic investors in Wejo include Palantir Technologies Inc. and General Motors.

BigBear.ai, GigCapital4 In Talks

AI company BigBear.ai is in discussions to go public via a merger with special purpose acquisition company GigCapital4 (GIG), Bloomberg's Gillian Tan reported. The blank check company is aiming to raise equity and convertible debt to support a deal that's set to value the company company at over $1.5 billion, Tan added.

Babylon, Alkuri SPAC Near Deal 

Babylon, a medical startup that connects patients and doctors via an app, is near a deal to come public via a merger with special purpose acquisition company Alkuri Global Acquisition (KURI), according to Bloomberg's Aaron Kirchfeld and Eyk Henning, citing sources. The deal could value Babylon at about $3.5 billion, according to people familiar with the matter, the report added.

New Rules to Tackle SPACs 

The U.S. Securities and Exchange Commission is considering new rules to protect investors amid a surge in the use of special purpose acquisition companies as capital-raising vehicles, according to Reuters' Katanga Johnson.

Gary Gensler, in prepared testimony to the financial services and general government subcommittee of the U.S. House Appropriations panel, said that overseeing SPACS has also placed demands on the resources at the watchdog, which has seen a 4% decline in its staff overall since 2016.

“How do SPACs fit in to our mission to maintain fair, orderly, and efficient markets? It could be the case that SPACs are less efficient than traditional IPOs,” said Gensler, adding he had tasked staff to recommend possible rules or guidance in this area.

Coverage Initiations

Northland analyst Subash Chandra initiated coverage of Sustainable Opportunities Acquisition Corp. (SOAC) with an Outperform rating and $20 price target. The SPAC has entered into a business combination agreement with DeepGreen Metals - which is developing a new, scalable source of EV battery metals - and the combined company will be renamed "The Metals Company Inc." and is expected to begin trading under the ticker symbol "TMC" upon closing.

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